- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. The Time Value of Money
- Subject 4. The Future Value and Present Value of a Series of Equal Cash Flows (Ordinary Annuities, Annuity Dues, and Perpetuities)
CFA Practice Question
You have $1,000 to invest today. In order for your $1,000 investment to grow to $1,480.25 at the end of 10 years, the money must be invested at what interest rate?
A. 4%
B. 3.5%
C. 3%
Explanation: Rate = (1480.25/1000)1/10 - 1 = 4%
User Contributed Comments 0
You need to log in first to add your comment.